UAE-based Dana Gas has signed a deal with UK cleantech firm Levidian to develop a graphene production site in Sharjah, as the country looks to strengthen its position in advanced materials manufacturing and emerging low-carbon technologies.
The companies signed a memorandum of understanding at the Make it in the Emirates event to develop the Sharjah Graphene Park, an initiative aimed at establishing local graphene production and supporting the future manufacturing of Levidian’s LOOP systems in the UAE.
Often described as a ‘wonder material’, graphene is used to strengthen materials in sectors including construction, polymers, coatings, batteries and energy systems, with global demand expected to rise sharply over the coming decade as industrial applications scale.
What makes graphene so strong?
Graphene is a single layer of carbon atoms arranged in a hexagonal structure. Just one atom thick, it is around 200 times stronger than steel by weight, while also being lightweight, flexible and highly conductive, making it attractive for a growing range of industrial applications.
The project will initially deploy Levidian’s LOOP technology in Sharjah, with indicative graphene production capacity of around 15 tonnes per year.
Investment in the first phase is expected to range between $2m and $5m, potentially rising beyond $50m as the project scales in line with market demand.
The agreement expands an existing partnership announced in January 2025, under which Dana Gas has been piloting Levidian’s methane cracking technology across its operations.
Dana Gas is expected to provide access to gas feedstocks, infrastructure and industrial integration capabilities as the companies seek to build a regional graphene supply chain and potentially localise production of LOOP systems in the UAE.
Levidian’s LOOP technology uses microwave plasma to crack methane into hydrogen and solid carbon in the form of graphene. The process is designed to create commercial products from existing gas streams that may otherwise be underutilised, while also supporting emissions reduction efforts.
Richard Hall, CEO of Dana Gas, said the project represented a “scalable industrial opportunity” that could support industrial diversification and local manufacturing capability in the UAE.
Alex Holden, CEO of Levidian, said, “Alongside graphene production, the opportunity to localise assembly and manufacturing of LOOP systems is a key step in building long-term industrial capability in the region.”
According to executives quoted by UAE publication The National, the partners ultimately aim to scale production into the “hundreds of tonnes” annually over the next few years, with ambitions for the UAE to become a major regional graphene producer.
Graphene can be integrated into materials including concrete, coatings, plastics and batteries to improve strength, conductivity and durability. ©Shutterstock
The National also reported that the companies are exploring ways to offset rising regional energy costs following recent tensions in the Middle East and the Iran conflict, including the use of solar and other renewable energy sources to support operations.
Levidian executives told the publication the modular nature of the LOOP systems could allow production capacity to scale rapidly depending on customer uptake and industrial demand.
The development comes amid growing interest in graphene commercialisation globally, particularly across construction materials, energy storage, coatings and industrial composites.
Industry interest in the material has accelerated as companies move beyond laboratory-scale development towards industrial production and commercial deployment.
The UAE has increasingly sought to position itself within the sector through partnerships and distribution agreements involving international graphene firms, including recent expansion moves by Australia-based First Graphene into the UAE market.
Earlier this year, the company signed agreements with Syron Green Thrust Dynamics to supply graphene products across India, the UAE and the SAARC nations.
According to Mordor Intelligence, the global graphene market is expected to grow from $2.91bn in 2026 to $15.2bn by 2031 as industrial-scale applications accelerate across sectors including batteries, coatings, electronics and composites.
